Understanding Federal Student Aid Programs
This comprehensive guide covers essential information on Federal Student Aid, including completing the FAFSA, Federal Student Grants at Barton, Federal Student Loans eligibility, and Parent Plus Loans. It details various types of aid available, such as Pell Grants and FSEOG, and provides insights on loan eligibility, interest, and repayment. The guide also outlines the process for applying for loans and grants, making it easier for students to navigate the financial aid system.
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Federal Student Aid Understanding Federal Financial Aid
Completing the FAFSA To apply for Federal financial aid, a Free Application for Federal Student Aid (FAFSA) must be completed. Students may apply through FAFSA on the Web at www.fafsa.gov. There is no charge to have an application processed. Appling for: federal loans, grants, and federal work study. You might ALREADY have an active FSA ID. If you do not know your FSA ID visit the website below and click on What if I forget my FSA ID username or password?
Federal Student Grants at Barton Federal Pell Grants (PELL) are basic entitlements funded by the federal government that do not need to be repaid. This program is designed for undergraduates who do not have a bachelor's degree, and it serves as the foundation, or base, for other forms of aid. Eligibility is based on need. The amount of the Pell grant is determined by a federal funding formula, the student's cost of education, and the number of credit hours for which the student enrolls each term. Pell grants are available for eligible students who are enrolled in an eligible program. Repayment can be required if you withdrawal from your course(s). Federal Supplemental Educational Opportunity Grants (FSEOG) -- are basic entitlements funded by the federal government and the college that do not need to be repaid. Eligibility is based on need and availability of funds. FSEOG funds are campus-based; and therefore, limited funds are available. Institutions participating in the FSEOG program are responsible for formulating a policy regarding distribution of FSEOG. Barton awards FSEOG in annual amounts of $400 annually to those applicants showing the greatest need as long as funds are available.
Federal Student Loans Eligibility - Your FAFSA application MUST be completed and a Federal Direct Student Loan awarded prior to completing any loan paperwork. You must be enrolled in at least SIX credit hours during the term that you receive a student loan. You also must maintain SAP (Satisfactory Academic Progress). Federal Direct Subsidized Loans are "need based" loans. This means that the federal government WILL PAY the interest that accumulates on your loan as long as you're enrolled at least half time and also during the six-month grace period. Federal Direct Unsubsidized Loans are not "need based". The federal government DOES NOT pay the interest on the Federal Direct Student Loans. If you accept a Federal Direct Student Unsubsidized Loan, you will be responsible for the interest as it accrues and compounds, starting from when the first disbursement is made.
Parent Plus Loan Federal Direct Parent Plus Loans - Federal Direct Parent PLUS Loans enable your parents to borrow money for educational expenses. An eligible parent may borrow up to the COA (Cost of Attendance) minus any estimated financial aid you are eligible to receive. These loans are approved based upon credit. Repayment begins 60 days after all loan funds are disbursed. To apply for a Federal Direct Parent Plus Loan please complete application on the Studentloans.gov website. Select the "Parent Borrowers" option and log into the site with the parent FSA user ID and password.
Loan Eligibility Federal Direct Subsidized Loan Amounts Year In School Freshman $3,500 Sophomore $4,500 Additional Federal Direct Unsubsidized Loan Amounts Dependent Students $2,000 Independent Students $6,000
Interest Rate for Federal Loans Federal Direct Subsidized Loans Federal Direct Unsubsidized Loans Academic Year 2015-16 4.29% 4.29% 2016-17 3.76% 3.76% 2017-18 4.45% 4.45% 2018-19 5.05% 5.05% Federal Direct Parent PLUS loans for the 2017-18 academic year have a 7% interest rate. Federal Direct Parent PLUS loans for the 2018-19 academic year have a 7.60% interest rate.*
Federal Work Study and Student Employment Federal Work Study (FWS) provides employment opportunities that enable students to earn money to fund their education. Also campus-based, FWS awards are based on documented need and availability of funds. This program encourages community service employment and work related to the student's course of study. To the extent possible, Barton will attempt to provide employment that complements and reinforces the student's educational and vocational career goals. FWS salaries will be paid at the current federal minimum wage and earnings are restricted to the amount of the award. Students employed through FWS will be paid on a monthly basis. Barton also provides Student Employment opportunities for students who would not otherwise qualify for Federal Work Study. These jobs are available to students with the approval of Barton's Human Resources office and are funded by Barton. Salaries are paid at current federal minimum wage. Students employed through Barton's Student Employment program will be paid on a monthly basis. For additional information, contact the Financial Aid Office at (866) 257-2574 or the Office of Human Resources at (620) 792-9275.
Before You Graduate or Leave School
Successful Repayment Checklist Be an informed borrower by learning about your loans and what to do for a smooth repayment experience. As you work through this checklist, you ll find out how to make payments and figure out which repayment plan is best for you; and you ll know what to do if you re having trouble making payments or think you might be eligible for loan forgiveness. Before You Graduate or Leave School After You Graduate or Leave School When It s Time to Start Making Payments
Review Your Federal Student Loan History Get your loan history by logging in to My Federal Student Aid you ll need to create an FSA ID if you don t already have one. As you review your information, note the following: The current loan balance and interest rate for each loan The loan type (depending on when you went to school and what loan programs your school participated in, you may have loans from different federal student loan programs; the types of loans you received can affect what benefits are available to you) The name of the loan servicer for each loan (a loan servicer is a company that handles the billing and other services on your loans; generally, you ll have one servicer for all your federal student loans, but there is a chance you could have more than one)
Get to Know Your Loan Servicer A loan servicer is a company that handles the billing and other services on your federal student loan. The loan servicer will work with you on repayment plans and loan consolidation and will assist you with other tasks related to your federal student loan. It is important to maintain contact with your loan servicer. If your circumstances change at any time during your repayment period, your loan servicer will be able to help. Why pay for help with your federal student loans when your loan servicer will help you for FREE? Contact your servicer to apply for income-driven repayment plans, student loan forgiveness, and more.
Create an Online Account on Your Servicers Website. You can find the most detailed and up-to-date information about your loans, make your payments, and manage your loans (for example, change repayment plans or apply for a deferment) on your loan servicer s website. When you create your account, be sure your contact information is correct. . Loan Servicer CornerStone FedLoan Servicing (PHEAA) Granite State GSMR Great Lakes Educational Loan Services, Inc. HESC/Edfinancial MOHELA Navient Nelnet OSLA Servicing Contact 1-800-663-1662 1-800-699-2908 1-888-556-0022 1-800-236-4300 1-855-337-6884 1-888-866-4352 1-800-722-1300 1-888-486-4722 1-866-264-9762
Complete Mandatory Exit Counseling All federal student loan borrowers must complete exit counseling. Exit counseling provides important information you need to help you prepare for repayment of your loans. Check with your school to find out how they want you to complete exit counseling. Schools have different requirements. Barton requests exit counseling each year that you borrow, even if you are returning or transferring the following year. You will be directed to complete exit counseling at www.studentloans.gov.
Set a Goal for Repayment After you know how much you can afford to pay each month, set a goal for repaying your loans. To begin setting your goal, ask and answer this question: Do I want to repay my loans quickly, or do I want to pay as little as possible per month? You can t choose both options. Any time you lower your payment, you ll be in repayment for a longer time and you ll pay more interest on your loans. **If your financial situation changes, you can change your repayment plan at any time. If you have questions about your loan repayment options or the process, contact your loan servicer.**
Select an Affordable Repayment Plan Now that you ve set a goal for repayment, you can find a repayment plan that fits your goal using the Repayment Estimator. If you want to pay your loans off quickly and you can afford to do it, select the Standard Repayment Plan. Unless you consolidate, your loans will be paid off after 10 years of payments. If you want to have the lowest monthly payment or can t afford to make payments under the Standard Repayment Plan, select an income-driven repayment plan. These plans set your payment at a percentage of your income, will usually have a lower monthly payment than other plans, and can have payments as low as $0 per month. With these plans, you ll be in repayment for up to 20 or 25 years. If your loans are not repaid in full after 20 or 25 years, the remaining balance will be forgiven. Learn more about income-driven repayment plans.
Know if You are Eligible for Loan Forgiveness Based on Your Employer or Job Public Service Loan Forgiveness (PSLF) Program: You may qualify for this loan forgiveness program if you are employed by a government or a not-for-profit organization. You must make 120 qualifying payments under an income-driven plan to qualify. Learn more about PSLF. Teacher Loan Forgiveness Program: You may qualify for this program if you (a) teach full-time for five complete and consecutive academic years in certain elementary and secondary schools and educational service agencies that serve low-income families, and (b) meet other qualifications. Get the details of the Teacher Loan Forgiveness Program. Find out more about forgiveness, cancellation, and discharge.
Reduce Your Federal Income Taxes You may be eligible to deduct a portion of the student loan interest you paid on your federal tax return. Student loan interest payments are reported both to the IRS and to you on IRS Form 1098-E, Student Loan Interest Statement. Check with the IRS or a tax advisor to see if you qualify for this deduction.
Tips for Successful Loan Repayment Be Responsible! Student loan debt does not go away. Be responsible for the money that you have borrowed and use this to build good credit and financial stability. Communicate! Communicate with your loan servicer if you ever have difficulty making payments. Do not start skipping payments. Your servicer is there to help and will assist you in finding a payment plan that works for your situation. Be Responsive! If you receive information from Barton or from your Loan Servicer that does not make sense to you, ask questions. It is not likely you will be sent information that is not important. Barton and your Loan Servicers are here to help, so please never be afraid to ask! Be Prepared! Make finding a job your top priority after graduation. Barton has resources to help you explore job opportunities, learn interview skills and prepare resumes! Use them!
